My husband and I bought an "owner financed home" earlier this yr and each month we pay mortgage interest. Can we claim all the interest that we have paid on taxes next year or does it even count because it wasn't financed through a bank? If so, should we receive a statement from the person we bought our house from before we file?
2006-12-08 07:36:36 · 4 answers · asked by lilmonkeefoofoo 2 in Business & Finance ➔ Renting & Real Estate
Yes, you can claim the interest. You should get a statement of the interest paid, normally a 1099INT form, from the person you paid the interest to.
2006-12-08 07:41:41 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Assuming you are on a contract for deed right now, not a lease to own and still under lease terms, then yes, you are the one who gets the interest deduction.
The seller is required to give you a 1098 form at the end of the year. If he doesn't, go to mortgage101.com and run an amortization schedule, and you'll have to do the math yourself and document in your files how you arrived at the figure. Might be worth using a CPA if you don't get your 1098. Which the seller doesn't want to give, most likely, so he can scam his own interest he's paying, assuming he's got his own financing on the property.
2006-12-08 07:46:52 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Yes, you can claim the interest. You should get a statement of the interest paid, normally a 1099INT form, from the person you paid the interest to. !!!
2006-12-08 07:56:10 · answer #3 · answered by m.sh26 1 · 0⤊ 0⤋
That is a question for a tax accountant. I think your situation is in that gray area between the black and white of yes or no.
2006-12-08 07:44:09 · answer #4 · answered by AJ 7 · 0⤊ 1⤋